The State Bank of Pakistan (SBP) has announced its fifth consecutive policy rate cut, reducing it by 200 basis points to 13%. This marks a significant drop from 22% in June 2024, as inflation eased to 4.9% in November. While core inflation remains sticky at 9.7%, improved growth indicators and a current account surplus signal a brighter economic outlook. The measured cuts aim to balance inflationary pressures with sustainable growth.
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